UPS hit by low Asian exports

Decides to reduce air capacity out of Asia by 10 per cent


air capacity reduction Asian exports decline Europe debt crisis Scott Davis uncertainty in United States United Parcel Service UPS


Hit by the continuing weakness in Asia exports, Atlanta-based United Parcel Service (UPS) has decided to reduce air capacity out of Asia by 10 per cent. This was in addition to the 10 per cent reduction in air capacity in October last year. Announcing the second quarter results, UPS chairman and chief executive Scott Davis pointed out that projections of economic expansion had been impacted by the debt crisis in Europe, the increasing uncertainty in the United States and the low exports from Asia. The company’s revenue growth had stagnated as the global economic outlook had become murky.